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From the Following Information, Prepare Note to Accounts on Finance Costs: Interest Paid to Bank ₹ 75,000 - Accountancy

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प्रश्न

From the following information, prepare Note to Accounts on Finance Costs: Interest paid to Bank ₹ 75,000; Interest on Debentures ₹ 58,000; Loss on issue of Debentures written off ₹ 27,500; and Commitment Charges ₹ 15,000.

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उत्तर

NOTES TO ACCOUNTS

NOTES TO ACCOUNTS

Note No.

Particulars 

Amount

(Rs)

  Finance Costs  
 

Interest paid to bank

75,000

1,75,500
  Interest on Debentures 58,000
  Loss on Issue of Debentures written off 27,500
 

Commitment charges

15,000

    1,75,500
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अध्याय 1: Financial Statements of a Company - Exercises [पृष्ठ ७१]

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टीएस ग्रेवाल Accountancy - Analysis of Financial Statements [English] Class 12
अध्याय 1 Financial Statements of a Company
Exercises | Q 45 | पृष्ठ ७१

वीडियो ट्यूटोरियलVIEW ALL [1]

संबंधित प्रश्न

Complete the following journal entries left blank in the books of VK Ltd.:

VK Ltd.
Journal
Date Particulars L.F.

Dr.

Rs

Cr.

Rs

2018
Feb 1

___________________             Dr.

        ___________________

(Purchased own 500, 9% debentures of Rs 100 each at Rs 97 each for immediate cancellation)

 

  ________

 

 

  ________

 

Feb 1

___________________             Dr.

       ___________________

       ___________________

(Cancelled own debentures)

 

  ________

 

 

 

 ________

 ________

______

___________________             Dr.

      ___________________

(______________________)

 

  ________

 

 

  ________

 


State the objectives of 'Analysis of Financial Statements'.


Financial Statements are prepared following the constituent accounting concepts principles procedures and also the legal environment in which the business organisation operate. These statements are the source of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way.

From the above statements identify any two values that a company should observe while preparing its financial statements. Also, State under which major headings and sub-headings the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act 2013

(1) Capital Reserve
(2) Calls-in-Advance
(3) Loose Tools
(4) Bank overdraft


State any one limitation of Financial Statement Analysis’


Financial statements are prepared following the consistent accounting concepts, principles, procedures and also the legal environment in which the business organizations operate. These statements are the sources of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way.
From the above statement identify any two values that a company should observe while preparing its financial statements. Also state under which major headings and sub-headings the following items will be presented in the balance sheet of a company as per Schedule III of the Companies Act 2013.
General Reserves, short term loans and advances, Capital work in progress and desgin.


State any two limitations and any two objectives of  'Analysis of Financial Statement'. 


State the interest of tax authorities in the analysis of financial statements.


State the significance of analysis of financial statements to ‘Top Management’.


List any five items that are shown under Reserves and Surplus.


State giving reason whether Trade Payables are classified as Current Liabilities or Non-current Liabilities in the Calance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases:

Case

Operating Cycle Period (Months) 

Expected Payment Period (Months

10

11

2

10

12

3 10 13
4 14 13
5

15

16


Classify the following items under major head and sub-head (if any) in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013:

(i) Capital Work-in-Progress:

(ii) Provision for Warranties;

(iii) Income received in Advance; and

(iv) Capital Advances


Under which heads the following items are classified or shown on the Assets part of the Balance Sheet of a copany: (i) Loose Tools; (ii) Bills Receivable; (iii) Sundry Debtors: and (iv) Advances Recoverable in Cash?


Choose the appropriate alternative from the given options:
Which of the following is a limitation of financial analysis?


Which of the following statement is not true?


Expenses for a business for the first year were ₹ 80,000. In the second year, it was increased to ₹ 88,000. What is the trend percentage in the second year?


Which Indian Companies Act is in force these days?


The Goodwill is not a ________.


A company prepares its Balance Sheet as per the format in ______.


Assertion (A): The focus of calculation of working capital revolves around managing the operating cycle of the business.

Reason (R): It is because the concept of operating cycle is required to ascertain the liquidity of assets and urgency of payments to liabilities.

In the context of the above two statements, which of the following is correct?


Which of the following points explain the nature of financial statements?


Financial statements includes which types of statements are required for external reporting and also for internal needs of the management?


Financial statements are the ______ of information for interested parties.


For income measurement ______ basis of accounting is followed.


Consider the following statements.

Statement 1 - "Facts and figures presented in financial statements are based on personal judgements"

Statement 2 - "Facts and figures presented in financial statements are not at all based on personal judgements"


Consider the following statements.

Statement 1 - "Going Concern concept assumes that the enterprise continues for a long period of time."

Statement 2 - "Going Concern concept assumes that the enterprise continues for a shorter period of time."


Name the expenses that are incurred in connection with the formation of a company?


What are the items shown under the heading of "Investments" in the balance sheet?


What are the items shown under the heading of "Current assets" in the balance sheet?


Which of the following is not a part of Finance Cost (in Statement of Profit and Loss)?


As per Schedule III, Part I of the Companies Act, 2013 'calls-in-arrears' will be presented under which of the following head/sub-head, in the Balance Sheet of a company?


Rudra, Dev and Shiv were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Their fixed capitals were ₹ 6,00,000, ₹ 4,00,000 and ₹ 2,00,000 respectively. Besides his capital Shiv had given a loan of ₹ 75,000 to the firm. Their partnership deed provided for the following:

  1. Interest on capital @9% p.a.
  2. Interest on partner's drawings @12% p.a.
  3. Salary to Rudra ₹ 30,000 per month and to Dev ₹ 40,000 per quarter.
  4. Interest on Shiv's loan @9% p.a.

During the year Rudra withdrew ₹ 50,000 at the end of each quarter; Dev withdrew ₹ 50,000 in the beginning of each half year and Shiv withdrew ₹ 70,000 at the end of each half year.

The profit of the firm for the year ended 31-3-2022 before allowing interest on Shiv's loan was ₹ 7,06,750.

What will the amount of interest on drawings of the partners?


Richa and Anmol are partners sharing profits in the ratio of 3 : 2 with capitals of ₹ 2,50,000 and ₹ 1,50,000 respectively. Interest on capital is agreed @6% p.a. Anmol is to be allowed an annual salary of ₹ 12,500. During the year ended 31st March 2023, the profits of the year prior to calculation of interest on capital but after charging Anmol’s salary amounted to ₹ 62,000. A provision of 5% of this profit is to be made in respect of manager’s commission.

Following is their Profit & Loss Appropriation Account:

Particulars (₹) Particulars (₹)
To Interest on Capital   By Profit & loss account (After manager’s commission) ___(2)___
Richa ______    
Anmol ______    
To Anmol’s Salary A/c 12,500    
To Profit transferred to:      
Richa’s Capital A/C (1) ___(1)___    
Anmol’s Capital A/c ______    
  ______   ______

The amount to be reflected in blank (2) will be: 


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